The U.S. Government just added 275B USD of new debt by likely issuing new government bonds. If central banks buy these, we see a direct expansion of the money supply by 275B. But what about when private sector buys with existing money? Is creating new debt - even without immediate money supply expansion - not a similar financial expansion in itself? What are your thoughts?
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The U.S. Government just added 275B USD of new debt by likely issuing new government bonds. If central banks buy these, we see a direct expansion of the money supply by 275B. But what about when private sector buys with existing money? Is creating new debt - even without immediate money supply expansion - not a similar financial expansion in itself? What are your thoughts?